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What is the significance of the Supreme Court case Mayer et al. v. Hellman?

The case was decided by the Supreme Court in 1875, making it one of the earlier bankruptcy-related cases heard by the Court.

The plaintiffs in the case were the assignees in bankruptcy of Bogen and others, appointed in bankruptcy proceedings in the District Court of the United States for the Southern District of Ohio.

The defendants were assignees of the same parties under the assignment law of the State of Ohio, and the suit was brought to obtain possession of property that had passed to the defendants.

In a rare unanimous 9-0 ruling, the Supreme Court reversed the lower court's decision.

The Court held that an assignment by an insolvent debtor of their property to trustees for the equal benefit of all creditors is not fraudulent.

The Court also ruled that when such an assignment is executed six months before bankruptcy proceedings are instituted, it is not assailable by the subsequent assignee in bankruptcy.

This case established an important precedent regarding the validity of general assignments for the benefit of creditors made prior to bankruptcy.

The ruling helped clarify the relationship between state insolvency laws and federal bankruptcy proceedings at a time when the legal framework was still developing.

The case demonstrated the Supreme Court's willingness to protect the rights of creditors in insolvency situations, even when it went against lower court rulings.

Mayer et al.

v.

Hellman helped shape the evolution of bankruptcy law in the late 19th century United States.

The unanimous decision highlighted the Court's consensus on the core principles at stake, despite the complex legal issues involved.

The case remains an important reference point for understanding the Supreme Court's early jurisprudence on bankruptcy and creditor rights.

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